Question
ParentCo has a net investment in foreign subsidiary of
USD 50m. It borrows USD 30m to hedge part of the net investment. The USD loan is designated as a hedge of net investment. During the year, the foreign currency strengthens, producing an exchange gain on the borrowings and on translation of the net investment. How are these amounts presented?Solution
For an effective net investment hedge, the effective portion of the gain/loss on the hedging instrument is recognised in OCI and presented in the foreign currency translation reserve; any ineffective portion goes to P&L. Translation of the net investment goes to OCI. They offset in OCI to the extent effective.
I. 27(p + 2) = 2p(24 – p)
II. 2q2 – 25q + 78 = 0
I. 12 x ² - 3 x – 15 = 0
II. 2 y² + 12
In the questions, two equations I and II are given. You have to solve both the equations to establish the correct relation between x and y and choose th...
The equation q2 - 17x + C = 0, has two roots ‘x’ and ‘y’ such that (x – y) = 7. Find an equation which is equal to thrice of the gi...
I. x2 – 7x + 12 = 0
II. y2 – 7y + 10 = 0
I. x2 – 18x + 81 = 0
II. y2 – 3y - 28 = 0
I. 2x2 - 15x + 25 = 0
II. 3y2 - 10y + 8 = 0
I. 9/(4 )p + 7/8p = 21/12
II. 7/5p = 9/10q + 1/4
I. x2 + 11x + 30 = 0
II. y2 + 17y + 72 = 0
Solve the quadratic equations and determine the relation between x and y:
Equation 1: x² - 32x + 252 = 0
Equation 2: y² - 30y + 221 = 0
